• What is the economic model?
  • Or, what do you mean by economic model?
  • Or, yours about economic models Give an idea.

In principle, the model consists of several variables Meansthemathematical form of the relationship. Various models are widely used to explain various complex economic issues. Hence the importance and significance of the model lie in economics.

Economic Model:

An economic model is a simple and short form of economic theory that relates economic theory and data using mathematical elements or diagrams with a specific goal in mind. It can be used to test the acceptability of various theories and predict the values of variables.

For example - the market model, national income model, etc. below
They are presented as.....
  1. market model: Q = a - bp (a > 0, b > 0),
                                QS = -C + DP (c > 0, d> 0)

      2.National Income Model: Y = C + l০, + GO
                                               C = a + B (Y-T) (a>0, 0<B<1)
                                               T =Y & y (y> 0, 0<8< 1)

The components of an economic model are variables, constants,
Parameters, equations, differentials, etc.......


Finally, it can be said that the economic model Interdependence of variables in economics Expresses the relationship mathematically or graphically. in economics. There are different national models. For example -business model, income model, etc. They carry quite important significance in the economy from their point of view.

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